Illinois Nonprofit Law Firm James C. Provenza & Associates, PC
Complex Charitable Gifts
One of the most common ways of fundraising is to solicit donations from donors who, essentially, provide cash donations and/or publicly traded securities. Although cash donations and securities are essential to Illinois nonprofits, there are many other ways that nonprofits receive charitable gifts. Throughout Illinois, more and more donors are electing to provide complex charitable gifts, including privately held securities, restricted stocks, and other illiquid assets (private C- and S-Corp stock, limited partnership interests, and privately held assets, among others).
In general, these are called complex charitable gifts, and they can serve as an extremely beneficial contributor to a successful nonprofit. However, because of the complexities associated with these gifts, it can be helpful to acquire the expertise and legal oversight of an Illinois nonprofit lawyer who has experience with complex charitable gifts.
Types of Complex Assets
Charitable non-cash gifts can take many forms; nonetheless, utilizing these charitable gifts has served to provide both donors and charitable organizations with a range of tax and other financial benefits. At the same time, however, if these donations are not structured properly, there can be incredibly detrimental to the financial well-being of the charity or nonprofit organization.
Some of the most common complex charitable gifts include:
- Real Estate: Personal residences, commercial properties, farmland or underdeveloped property, other real property
- Business Interests: Closely held stock (C- or S-Corp), partnership interests
- Personal Property: Artwork, royalties, copyrights, patents, valuable collectibles
- Alternative Asset Gifts: Life insurance policies, retirement plans, oil and gas interests, private equity
This is by no means an exhaustive list. As such, whenever you’re receiving a complex charitable gift, it can be helpful to have an experienced attorney (who’s aligned with the interests of your charity) to help properly adopt, register, and, if applicable, use the complex gift for the benefit of the charity.
Contact James C. Provenza & Associates, PC For Your Complex Charitable Gifts
For over 20 years, James C. Provenza & Associates, PC has helped hundreds of nonprofit organizations fully manage their complex charitable gifts. It is important to keep in mind that nearly every charitable gift, regardless of its complexity, needs to be recorded and used properly. With the legal oversight of attorney Provenza, we can help make sure that all complex charitable gifts follow Illinois fundraising regulations. For a consultation with Provenza, call us today at (847) 729-3939 or visit our law offices in Glenview, IL.